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Hire Purchase_Bridge Course

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Hire purchase system is governed by

a)

Hire Purchase Act, 1972

b)

Sale of Goods Act, 1930

c)

Instalment Act, 1972

d)

Properties Registeration Act, 1930

2.

Under Hire Purchase System, the agreement can __________ anytime.

a)

renewed

b)

registered

c)

terminated

d)

enndorsed

3.

Ownership of goods under hire purchase agreement is transferred at the time of

a)

payment of down payment

b)

payment of first instalment

c)

payment of last instalment

d)

anytime

4.

What is transferred immediately to Hirer under hire purchase system?

a)

Ownership of the asset

b)

Possession of the asset

c)

Ownership and possession of the asset

d)

None of these

5.

Under Hire purchase system, __________ has the right to sell.

a)

Hirer

b)

Hire Vendor

c)

Debtor

d)

None

6.

If there is any default in payment, the seller has the right to repossess the goods and forfeit the amount already received.

a)

True

b)

False

7.

The initial amount paid in hire purchase system is called

a)

Cash price

b)

Hire purchase price

c)

Interest

d)

Down payment

8.

The difference between hire purchase price and the cash price is called

a)

Cost of the asset

b)

Instalment price

c)

Total interest

d)

Cash price

9.

Under Hire purchase system, the buyer is called

a)

Buyer

b)

Hirer

c)

Hire Vendor

d)

Debtor

10.

Under hire purchase system, interest is calculated on

a)

Hire charges

b)

Hire purchase price

c)

Cash price

d)

Down payment